Industrial Relations

Industrial Relationship
Industrial Relationship In the words of Lester: "Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and cooperation; and between conflicting interests of the individual, the group and the community One of the most comprehensive definitions which views industrial relations from the perspective of human relationships is by J. Henry Richardson:
"Industrial relations is an art, the art of living together for purposes of production. The parties while working together learn this art by acquiring the skills of adjustment.

Main Parties in Industrial Relations :

Main Parties in Industrial Relations In simple words, industrial relations are the outcome of the 'employment relationships' in industry, i.e. between employers and labour. The government of a nation or state influences these relations to a great extent. Thus, there are three main parties in industrial relations: Workers and their Organizations i.e. Trade Union The personal characteristics of workers, their culture, educational attainments, qualifications, skills, attitude towards work, etc. play an important role in industrial relations. Employers and their Organization: The employers are a very important variable in industrial relations. They provide employment to workers and try to regulate their behavior for getting high productivity from them. In order to increase their bargaining power, employers in several industries have organized employers' associations.

Industrial Relations
These associations put pressure on the trade unions and the Government. Government: The Government or State exerts an important influence on industrial relations through such measures as providing employment, intervening in working relationships. and regulating wages, bonus and working conditions through various laws relating to labour.

Industrial Relations
Features of Industrial Relations :

Features of Industrial Relations Industrial relations are born out of employment relationship in an industrial setting. Without the existence of two parties i.e. labour and management, this relationship cannot exist. It is the industry, which provides the environment for industrial relations. Industrial relations are characterized by both conflict and co-operation. So the focus of industrial relations is on the study of the attitudes, relationships, practices and procedures developed by the contending parties to resolve or at least minimize conflicts. As the labour and management do not operate in isolation but are a part of the large system, so the study of industrial relations also includes vital environmental issues like technology of the workplace, country's socioeconomic and political environment, nation's labour policy, attitude of trade unions, workers and employers.

Industrial Relations
Industrial relations also involve the study of conditions conducive to the labour, management co-operation as well as the practices and procedures required to elicit the desired co-operation from both the parties. Industrial relations also study the laws, rules, regulations, agreements, awards of court, customs and traditions, as well as policy framework laid down by the government for eliciting co-operation between labour and management. Besides this, it makes an in-depth analysis of the intervening patterns of the executive and judiciary in the regulation of labour-management relations.

Industrial Relations
Scope of Industrial Relations : 1) Development of Healthy Labour-Management Relations: The promotion of healthy labour management relations pre-supposes: The existence of strong, well-organized, democratic and responsible trade unions and associations of employers. This can lead to: Job security of employees Increased workers' participation in management Negotiations, consultations and discussions Good labour-management relations. 2) Maintenance of Industrial Peace: Industrial peace pre-supposes the absence of industrial strife. Industrial peace is essential for increased productivity and harmonious labour-management relations.

Industrial Relations
The industrial peace can be largely nurtured through the following means: Machinery should be set up for the prevention and settlement of industrial disputes The industrial peace can also be attained by the creation and maintenance of implementation cells and evaluation committees which have the power to look into implementation of agreements, settlements and awards and also violations of statutory provisions laid down under various labour laws.

Industrial Relations
Scope of Industrial Relations (iii) Development of Industrial Democracy: The idea of industrial democracy states that the labour should have the right to be associated with the management of an industry. To achieve this objective, the following techniques are usually employed: Establishment of the Shop Councils and Joint Management Councils at the floor and plant level. These councils aim at: Improving the working and living conditions of employee Improving productivity, encourage suggestions from employees Assisting the administration of laws and agreements Serve as a channel of communication between the management and employees Creating among the employees a sense of participation in the decision-making process and Sense of belonging to the industry.

Industrial Relations
Contemporary issues in IR : Low Wages. Low wages have been a perennial problem and have been a source of industrial dispute for years despite the existence of Payment of Wages Act and the Minimum Wages Act. The acts do not seem to be solving the problem due to their poor implementation. In many of the factories, workers are still given wages below subsistence level, which leads to high degree of dissatisfaction and subsequent decrease in productivity. In many industries, the minimum wages have not been revised at par to compensate for it. Employment of Women.

Industrial Relations
In the Indian cultural setup, the employment of women is a major problem even though things have started changing in the recent times. There are special provisions regarding the employment of women in the Factories Act, which prohibit employment of women during the night shift and also on heavy machinery. Under the Equal Remuneration Act, women are entitled to equality of wages at par with the male workers. Some employers don't follow the above provisions in letter and spirit and continue to exploit the women workers by virtue of their strong position and because of mass illiteracy and superstition among the women workers. .

Industrial Relations
Ignorance and illiteracy. Various labour laws that have beer made would be beneficial to the workers if implemented properly. For this it is important that the workers themselves understand the underlying principles and provisions of the law and demand whatever is due to them. With high rate of ignorance and illiteracy prevailing among the workers, it car be imagined how many of them know about the laws. It is here that the exploitation of workers takes place and legal provisions are ignored totally

The Collective Bargaining Process

What Is collective bargaining?
What Is good faith bargaining?
Both management and labor are required by law to negotiate wage, hours, and terms and conditions of employment in good faith.

Both parties communicate and negotiate. They match proposals with counterproposals in a reasonable effort to arrive at an agreement. It does not mean that one party compels another to agree to a proposal or make any specific concessions

Violations of Good Faith Bargaining

Surface bargaining Inadequate concessions Inadequate proposals and demands Dilatory tactics Imposing conditions. Making unilateral changes in conditions. Bypassing the representative. Committing unfair labor practices during negotiations. Withholding information Ignoring bargaining items

Preparing for Negotiations

Sources of negotiating information
Local and industry pay and benefits comparisons Distribution demographics of the workforce Benefit costs, overall earnings levels, and the amount and cost of overtime Cost of the current labor contract and the increased costtotal, per employee, and per hourof the unions demands. Grievances and feedback from supervisors Counteroffers and arguments.

Preparing for Negotiations

Sources of negotiating information (contd)
Attitude surveys to test employee reactions to sections of the contract that management may feel require change

informal conferences with local union leaders to discuss the operational effectiveness of the contract and to send up trial balloons on management ideas for change.

Classes of Bargaining Items

Voluntary (permissible) bargaining items Illegal bargaining items
Items in collective bargaining over which bargaining is neither illegal nor mandatoryneither party can be compelled against its wishes to negotiate over those items.
Items in collective bargaining that are forbidden by law; for example, a clause agreeing to hire union members exclusively would be illegal in a right-to-work state. Items in collective bargaining that a party must bargain over if they are introduced by the other partyfor example, pay

Mandatory bargaining items

Bargaining Items
Mandatory Rates of pay Indemnity bondsWages Hours of employment Overtime pay Shift differentials Holidays Vacations Severance pay Pensions Insurance benefits Profit-sharing plans Christmas bonuses Company housing, meals, and discounts Employee security Job performance Union security Managementunion relationship Drug testing of employees

Permissible Indemnity bonds Management rights as to union affairs Pension benefits of retired employees Scope of the bargaining unit Including supervisors in the contract Additional parties to the contract such as the international union Use of union label Settlement of unfair labor changes Prices in cafeteria Continuance of past contract Membership of bargaining team Employment of strike breakers

Bargaining Stages
Presentation of initial demands
Reduction of demands
Both parties are usually quite far apart on some issues. Each side trades off some of its demands to gain others.

Subcommittee studies

An informal settlement

The parties form joint subcommittees to try to work out reasonable alternatives.
Each group goes back to its sponsor. Union seeks to have members vote to ratify the agreement.

Signing the formal agreement

Bargaining Hints
Be sure to set clear objectives for every bargaining item, and be sure you understand the reason for each. Do not hurry. When in doubt, caucus with your associates. Be well prepared with firm data supporting your position. Always strive to keep some flexibility in your position. Dont concern yourself just with what the other party says and does; find out why. Respect the importance of face saving for the other party.

Be alert to the real intentions of the other partynot only for goals, but also for priorities. Be a good listener

Build a reputation for being fair but firm. Learn to control your emotions and use them as a tool. As you make each bargaining move, be sure you know its relationship to all other moves. Measure each move against your objectives. Pay close attention to the wording of every clause negotiated; they are often a source of grievances. Remember that collective bargaining is a compromise process. There is no such thing as having all the pie. Try to understand people and their personalities. Consider the impact of present negotiations on those in future years.

 An impasse
Usually occurs because one party is demanding more than the other will offer. Sometimes an impasse can be resolved through a third partya disinterested person such as a mediator or arbitrator. If the impasse is not resolved in this way, the union may call a work stoppage, or strike, to put pressure on management.

 Mediation
A neutral third party (mediator) tries to assist the principals in reaching agreement by holding meetings with each party to find common ground for further bargaining.

The mediator is a go-between and has no authority to dictate terms or make concessions.
The mediator communicates assessments of the likelihood of a strike, the possible settlement packages available, and the like.

Third-Party Involvement (contd)

Fact finder
Arbitration
A neutral party who studies the issues in a dispute and makes a public recommendation for a reasonable settlement.

An arbitrator often has the power to determine and dictate the settlement terms. Arbitration can guarantee a solution to an impasse.
Interest arbitration Rights arbitration

Strikes
Economic strike
Unfair labor practice strikes
Results from a failure to agree on the terms of a contract. Called to protest illegal conduct by the employer. An unauthorized strike occurring during the term of a contract. Occurs when one union strikes in support of the strike of another union.

Wildcat strike

Sympathy strike

Main Sections of a Contract Agreement

Management rights Union security and automatic payroll dues deduction Grievance procedures Arbitration of grievances Disciplinary procedures Compensation rates Hours of work and overtime Benefits: vacations, holidays, insurance, pensions Health and safety provisions Employee security seniority provisions, and Contract expiration date.

Grievances
Grievance
Any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer. Absenteeism Insubordination Overtime Plant rules

Sources of grievances

Grievance Procedure
Grievant and shop steward meet with supervisor. If not resolved,
Employee files formal grievance Grievant and shop steward meet with supervisors boss. If not resolved, Meeting with higher-level managers. If not resolved, matter goes to arbitration.

Handling Grievances: Do

Investigate and handle each case as though it may eventually result in arbitration. Talk with the employee about his or her grievance; give the person a full hearing. Require the union to identify specific contractual provisions allegedly violated. Comply with the contractual time limits for handling the grievance. Visit the work area of the grievance. Determine whether there were any witnesses. Examine the grievants personnel record. Fully examine prior grievance records. Treat the union representative as your equal. Hold your grievance discussions privately. Fully inform your own supervisor of grievance matters.

Handling Grievances: Dont

Discuss the case with the union steward alonethe grievant should be there. Make arrangements with individual employees that are inconsistent with the labor agreement. Hold back the remedy if the company is wrong. Admit to the binding effect of a past practice. Relinquish to the union your rights as a manager. Settle grievances based on what is fair. Instead, stick to the labor agreement. Bargain over items not covered by the contract. Treat as subject to arbitration claims demanding the discipline or discharge of managers. Give long written grievance answers. Trade a grievance settlement for a grievance withdrawal. Deny grievances because your hands have been tied by management. Agree to informal amendments in the contract.

The Union Movement Today and Tomorrow

Declining membership
Laws have taken over much of the unions traditional role as the workers protector. Automation, globalization and technology have reduced jobs in unionized manufacturing sectors.

Unions have fail to organize new plants.

Unions have been more successful in organizing workers in the public sector. Management has become better at resisting union organizing efforts